Tuesday, June 1, 2010

Outsourcing and Cave Creek Unified

I received this quite recently from Will Wright and thought it to be interesting (a possible CCUSD cost reduction area?). I checked some of the figures and found them to be OK, especially "supplies" which showed an annual compounded growth rate of 22% over the last 8-9 years. It cannot be gasoline/diesel fuel, whose price , according to government sources, grew only at a 9% annual compounded growth rate during the period. Can CCUSD administrators indicate how the rest of the "supply" money was spent?

Beechcoft

----------------

"........Look at outsourcing (student) transportation....." says a CCUSD parent!

"........Consider outsourcing (student) transportation....." says a CCUSD governing board member.



Can CCUSD save significant money by outsourcing its school bus operations and free these funds for use in education activities? Probably so!

Let's look at CCUSD's school bus operations: the annual budget has grown from $1.1 million to $2.5 million in eight years, representing a compounded annual growth rate of 12-13%. Student growth , on the other hand, was considerably lower, showing a 3-4% compounded annual growth rate in the same period. Compounded annual growth in route-miles was also about 3 percent in the same period, despite the transition from a 175-day school year in 2000-1 to 180-day school year commencing 2004-5.

How has CCUSD spent its school bus funding? Student transportation salaries grew from $672,000 in 2000-1 to about $1.25 million in 2008-9, reflecting an 8% compounded annual growth rate. Fringe benefits nearly quadrupled, increasing at a compounded annual growth rate of 21%. Fringe benefits were equivalent to 18% of salary in 2000-1 and about 46% of salary in 2008-9. Another major bus transportation cost center, "supplies" (gasoline, etc) increased at a compounded annual growth rate of about 22% in the same period, despite an annual growth rate of 3% in route-miles.

How much money can CCUSD save by possibly outsourcing its student bus operations? The national private school bus trade association indicates that school districts could save up to 30% of the transportation budget, though a 20% savings figure is probably more realistic. Using 2008-9 figures, this could represent a possible savings of about $500,000 and possibly could reach as high as $750,000.

Have other Arizona school districts outsourced all or part of their school bus operations? Yes, with 22 Arizona school districts covering all or a majority of their school bus operations via contract bus operators. Another 23 school districts use contract bus operators to significantly supplement their existing bus fleet (supplementing up to 40+% of their total route-miles). An additional 44 school districts use contract bus operators for the transportation of special needs and homeless students.

In these bad economic times, there is always concern for the existing bus drivers employed by a public school district. Well, most larger contract bus operators prefer to employ those experienced individuals affected by a transition in bus transportation policy. These drivers' knowledge of the school district geography and the district personnel involved has been found to be invaluable. according to many contract bus operators.

Many school district observers noted that a major source of resistance to outsourcing of non-education activities is the school district administration ("fear of change"). Despite this, the successful transition to outsourcing non-education functions generally resulted from district taxpayers pressuring school districts to reduce costs.

When is CCUSD going to tighten its belt and focus on education issues, rather than trying to operate a bus fleet?

The above analysis was based on Annual Financial Reports published by CCUSD and Transportation Route Reports (SAIS TRAN55-1) published by the Arizona Department of Education from data provided by CCUSD.

Will Wright

10 comments:

  1. The fictional "Will Wright" normally spells his fictional name "Will Wreight." I believe it to be a moniker for someone at the Sonoran News.

    That aside, while I do not know if outsourcing will truly save the district money, it might be worth exploring.

    I would however note that some of fictional Will Wright's assumptions need to be questioned. For instance, fictional Will Wright wonders how gas costs can go up 22% in a time period that route miles only increased 3%. Last time I looked at the gas pumps, the cost of gas seems like it can go up 22% in one week, let alone a number of years regardless of any nameless government study cited by fictional Will Wright/Wreight. While the district probably negotiates a yearly rate for gas, the huge run up in gas prices from year to year will still show up.

    Also, fictional Will Wright complains about the rise in fringe benefits. Will fictional Will Wright only be happy when the children of Cave Creek trudge home through the deserts with coyotes and rattlesnakes because Cave Creek can no longer attract bus drivers. I remember many of them fleeing to Scottsdale to drive for better benefits. Has Will Wright forgotten about competition as an economic driver? Can it be that Will Wright is wrong?

    ReplyDelete
  2. This is a terrible Idea; working with the school districts across the country I have seen how contractors can ruin a school district and hold them hostage when it comes to efficiency. I know the people at the Transportation department and they are very careful to spend every dime. I know that you have a lot of figures that are posted here but you also have to take into account the fact that driver’s salary is just one aspect. They also are paying health benefits for these drivers which have skyrocketed over the last 8 years. I also question your figures, however They currently are working on ideas that will help save the district money and I hope that when some of these ideas actually go through, you will be the first to recognized the job that Bruce and his wonderful staff have done in order to save the tax payers money!

    ReplyDelete
  3. It must be a sign of the times: if you do not like the message, shoot the messenger!

    First, Mr. Wreight assures me that he has no affiliation with the Sonoran News (although they have been kind enough to publish his occasional messages regarding CCUSD operations). As a district taxpayer, Mr. Wreight appears to question the financial acumen of CCUSD administrators and its governing board, in light of past funding proposals for 5,000 lap tops, a "Taj Mahal" high school costing about $70 million (not including interest on the bonds that would have to be issued), a $5 million swimming pool complex and a perpetual series of budget overrides.

    A CCUSDWatch contributor (June 1, 2010, 4:31 pm) appears to question the fuel cost statistics from a "nameless" government source. Mr. Wreight notes that the source of his figures is the "History of average diesel and gasoline retail fuel prices" published by the Energy Information Administration, US Department of Energy. This information is easily available on the web.

    As regards bus transportation personnel, Mr. Wreight noted that their fringe benefits grew from 18% of salary in 2000-1 to 46% of salary some eight years later. Comparable fringe benefit figures for classroom teachers were 16% of salary in 2000-1 growing to 31% of salary about eight years later. If fringe benefits are so key in personnel retention, we ask whether it is less important to retain classroom teachers in comparison to school bus operators (though both are important in CCUSD's overall operations). The above information has been derived from the Annual Financial Reports issued by CCUSD.

    Another CCUSDWatch contributor (June 2, 2010, 2:21 pm) questions the reliance of any school district on contract bus operators. First, there are multiple national school bus operators so that school districts do have the opportunity to transfer their operations elsewhere if dissatisfied with a particular operator. Second, almost 90 school districts in Arizona currently utilize the services of contract bus operators, either completely or partially, to transport their students. This information is available in Transportation Route reports included on the Arizona Department of Education website.

    Beechcroft

    ReplyDelete
  4. Beechcroft - Wreight does not exist in the tax database, or any listings for the state. Either he has covered his tracks really well, or he is not using his real name. I just question why such a regular source to the SN does not use his real name. Is he afraid that all of the PTA moms will come after him?

    I don't have any problem with people asking the school district to look at other solutions for busing? I do like citations when actual numbers are thrown around. Also, I do prefer that the district actually be asked if they have looked at alternative scenarios. Having dealt with the district on other matters, my guess is that if a "non-fictional" person asks them about transportation, that they will be willing to discuss it in depth with them including reasons for the increases and reasons for keeping it in-house. Sometimes in-house actually does reap savings, sometimes not. Cannot really understand why fictional Will Wreight (however he spells his name it is still a fictional creation - sounds a lot better than Will Wrong doesn't it?) spends so much time writing to Beechcroft and SN, and doesn't just discuss concerns directly with the district first (not via a time controlled governing board meeting, just call them up).

    ReplyDelete
  5. 'Cmon, you people... campaign finance records will tell you that the OWNER of a transportation company and Sorchych have been best buddies in forming NO committees for just about every election in the history of CCUSD, especially large bond elections. Turn the WW upside down and you have MM... this is dirty politics and it's hurting our kids AND property values. Meanwhile, the teachers and students AND bus drivers will show up every day and work their tails off. Just goes to show you... what won't kill you will only make you stronger in the end. Long live CCUSD.

    ReplyDelete
  6. Sorry, I don't swing in the same circles as Sorchych, but I will try to look for an MM in the campaign finance records. Thanks for the tip.

    ReplyDelete
  7. Try Marti Marino of Take Back Control of Our Schools, which has not been active for at least three years.

    ReplyDelete
  8. If Marti Marino, then somebody may have a mess on their hands. SN posted letters from both Marti Marino and Will Wreight against the k-3 override on the same date: http://www.sonorannews.com/archives/2009/091014/letters2e.html.

    I am not sure if this technically breaks any laws (i.e. campaign finance, pac, etc.), but something definitely does not seem Wreight!!!!

    ReplyDelete
  9. Um, the schools haven't asked for busses in 3 years, either.

    Would be nice if one day we could at least have air conditioned busses for all students... But I guess the kids will sweat some more until this community stands up to support them.

    ReplyDelete
  10. Has anyone looked at the bus routes posted for Sonoran Trails and Cactus Shadows for the new year? Looks like an awful lot of 1 hour and 1 1/2 rides for ccusd kids. We live 10 minutes from Cactus Shadows and according to the schedule it would take my kids 1 hour to get home if they took the bus. These are conservative estimates mind you because as anyone will tell you the times are always off at the begining of the year. Way to plan CCUSD!

    ReplyDelete

Anyone can comment but profane or defamatory comments will be removed.